Executive Summary

This BWD Census is now the definitive source of information on earnings in the FS sector. It drills down to salaries and bonuses, looking at how these are derived for a range of occupational categories.

It also delves into work practices, examining the shift towards hybrid working models and attitudes towards the Diversity, Inclusion, and Equity initiative. The Census also covers the sector infrastructure, size of organisation, employment status and of course trends in qualifications.

Overall, it shows the impact of different factors on earnings: occupation, age, gender, location, qualifications and more.

40% of employed Advisers earn at least £100,000

So, whether you are seeking to benchmark your own firm’s approach to salary, bonus and benefits, or even compare yourself to your peers you’ll find a wealth of information here for you to study or simply use as a reference throughout the year.

This year’s Census has many highlights, but the emergence of the £100,000 adviser is one. In fact, 40% of employed advisers earn at least £100,000.

In this Census, we observed a highly successful sector characterised by rising incomes and a continuous commitment to professional qualifications.

Last year we predicted that the sector would respond well to the demands of Consumer Duty just as it has to all previous regulatory interventions. This has proven to be the case.

But there are some developments to watch. Firstly, the focus on ongoing charges. Advisers’ business models are now based on the expectation of a predictable revenue flow and the “Duty” has made it clear that corresponding services must be seen to offer value.

Secondly, on the value theme several asset managers are finding business more of a challenge and the platform sector having only really formed itself over the last twenty years is having to regroup, reform again with a sharper focus on value with associated falls in prices.

Will any of this start to be reflected in earnings? The answer must be yes but against this for advisers there is the overwhelming fact that demand is there and rising.

New advisers are not entering the profession in great numbers so the incumbents can continue to offer a great service at a fair price.

The much-heralded move to digital solutions continues to receive considerable attention.

The future will belong to those who embrace technology....

It would be unwise to say it won’t happen, but for today the face-to-face human approach wins out. The future will however belong to those who embrace technology, and the use of AI can for all in this sector point to new ways of working to drive growth, alongside the ability to serve clients more quickly and effectively.

For advisers we recognise for the first time that women earn more than men

On gender we report a mixed picture. For advisers we recognise for the first time that women earn more than men.

Only narrowly but still this is a big moment for a sector which remains male dominated (only 21% of advisers are women).

We suggest that the eradication of the gender pay gap be used as a platform for recruitment. If more women are attracted to the profession, then it’s not too much of a stretch to suggest that the profession overall will benefit and operate more in tune with the wider population.

For BDMs the gender problem is two-fold. The pay gap remains and on top of that there just are not enough female BDMs (14%). Moreover, BDMs are most likely to identify as white across all occupations surveyed in our Census.

On earnings BDMs continue to do very well and are the highest paid group in the Census. Given their advantage in benefit provision it’s clear that this role is seen as offering sustained value to their provider employers.

Of the various BDM roles, the DFM BDM is now the most well rewarded.

The BDM role has developed strongly and now they use their time effectively with a focus on events – webinars and local seminars. Numbers are relatively small, so this is reflected in the market price for the role. There is still a very substantial gap between field based and telephone-based BDMs.

As we noted last year: the new working style is hybrid. The majority now split their time between work and home. This is now fully accepted and has almost receded as a conversational point. Some work tasks require team and office stimulus, some work requires individual concentration. Hybrid just seems natural.

over 60% expecting an increase in earnings in the coming years

We ask respondents about their expectations for the future, and they see a very positive outlook with over 60% once again expecting an increase in earnings in the coming year.

The stock market is seen as the most positive factor but with some concern over the impact of the political environment, housing market and the economy.

Yet a change of government could easily be very positive for the sector. Advisers thrive in conditions of change – clients seek new solutions and advisers are on hand to provide them.

The section on DE&I will be of interest to all levels including senior leadership teams. The Census shows that 82% have a DE&I policy in place, which is positive; however, this represents no increase from last year. The requirement is for all firms to have a policy and of course to adhere to it.

this represents no increase from last year.

This year less respondents commented with scepticism though there will always be a segment who considers any intervention like this to be inappropriate to a commercial business.

As we note, the gender pay gap for advisers has shrunk considerably but for other occupations it remains too high. Moreover, there are too few female advisers and BDMs. Significant progress in these areas is essential for the success of DE&I initiatives.

Finally, this document gathers the main data of interest to the sector, but what lies beneath is an invaluable interactive data bank of salaries, bonuses and benefits and how they relate to a wide range of variables. BWD works with clients to interrogate this data to reveal insights of huge value to a range of different businesses.